The Korea Herald

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Customs agency uncovers tax evasion through oil smuggling

By Korea Herald

Published : March 7, 2012 - 21:21

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The Korea Customs Service uncovered an oil smuggling case by two distribution entities who dodged some 4.3 billion won in taxes while selling oil from Singapore, the agency said Wednesday.

The tax authority arrested one and filed complaints against seven others involved in smuggling 9.45 million liters of base oil used for making lubricant, it said. The Korea Customs Service is after the other three who fled during the investigation process.

“We caught a total of 11 people who smuggled unrefined oil from Singapore and those who helped distribute it across the country,” a customs official said.

In some cases, the two companies who brought in base oil by issuing standard contract forms since 2010. They forged receipts in the distribution process to hide the case, reports said.

“Oil they smuggled isn’t inspected for safety purposes and can cause trouble in vehicles, including an explosion,” a KCS official warned.

The two entities dodged a total of 4.3 billion won in taxes from distributing some 15 billion won worth of oil, the tax agency confirmed. The agency prioritized the fight against tax evasion this year, targeting wealthy individuals and companies hiding money through offshore havens and illegal transactions.
By Cynthia J. Kim (cynthiak@heraldcorp.com)